Do You Need a Product Liability Insurance Policy?
When you run a business, you need to ensure you protect yourself, your property, your employees and your customers or clients against unexpected situations. Of course, you probably already have general liability insurance, workers’ compensation insurance and a range of other policies, but are you forgetting an important one? Read on to determine if you need a product liability insurance policy.
What Is Product Liability Insurance?
If you sell a product, you need product liability insurance. This policy protects you in the event that someone who purchases your product becomes injured or dies. It will also protect you if your product damages someone else’s personal or business property. Product liability insurance is common for everything from toys to pet food.
Things to Consider When Choosing Your Policy
Not all types of products require the same amount of liability insurance. As you consider which plan is right for you, keep a few things in mind.
- The type of product you sell
- How many you intend to sell
- Who will use your product
- How clear the instructions for use are
- The claims you have made about your product
When purchasing a product liability insurance policy or any other insurance coverage for your business, ensure you work with an insurance company that is well-versed in business insurance. The company should have a good reputation and be licensed to provide policies in your state.